Brand authorization model is one of the unique business models of Antarctic e-commerce. The company analyzed to reporters that there are three preconditions for opening brand authorization.
First of all, the brand awareness is high. Antarctic e-commerce started to operate Antarctic brands from 1998, and accumulated 10 for more than years around 2008.
During this period, the company seized the opportunity of changing consumption concept and upgrading thermal insulation technology, seized the soaring thermal underwear products, and won a good user base and brand recognition base with warm and comfortable products, which is the basis for turning to brand authorization business.
The second is mature product categories and relatively deep supply chain resources.
Antarctic brand has rich experience in the development and operation of thermal underwear series products, and has a deep understanding of the products; At the same time, based on the development of underwear products business for many years, the company has also accumulated more supply chain resources, laying the foundation for the brand authorization model at the front end of the industrial chain.
The third is the opening of the e-commerce era.
Around 2008, e-commerce began to flourish. On the one hand, the competition in traditional industries is becoming increasingly fierce, on the other hand, the rise of e-commerce is a good opportunity to transform into brand authorization and industrial chain services based on e-commerce channels.
Antarctic e-commerce said that after the brand authorization model was launched, the company's functions changed.
Previously, the company was a traditional clothing enterprise, responsible for product research and development, design, production, warehousing, logistics and sales. After the brand authorization mode began, the company focused on brand authorization and industrial chain services, mainly responsible for brand building, authorization services and industrial chain services.
Among them, industrial chain services mainly include industrial resource promotion, data empowerment, R&D design, traffic management, logistics and customer service improvement. To provide more cost-effective products that consumers like, and to help authorized suppliers and authorized distributors improve the efficiency of commodity and capital turnover in the era of e-commerce.
It is planned to launch offline retail business.
The company's positioning is "China's leading consumer brand focusing on e-commerce channels": Antarctic people take the family as the scene, and provide consumers in Ali, JD.COM, social e-commerce, Vipshop and other e-commerce channels with personalized basic products that are cost-effective and penetrate the consumption level and consumption cycle.
The data shows that by the end of the third quarter of 20 19, the GMV of Antarctic people, the dominant category of Ali platform, was 2.329 billion yuan, up 55.98% year-on-year; The market share was 7. 10%, up 29.30% year-on-year, ranking first in the industry; Bedding GMV 1.292 million yuan, up 51.55% year-on-year; The market share was 6.98%, up 24.06% year-on-year, ranking first in the industry.
The company believes that the market share of Antarctic people's dominant categories has been further improved, and there is still much room for growth.
From the perspective of financial performance, Antarctic e-commerce continues to maintain a relatively stable growth rate in the field of brand authorization and industrial chain services. However, while maintaining the stability of its main business, Antarctic e-commerce has been cautiously exploring new business growth points in recent years based on the principle of small-step innovation.
At present, the company is planning to launch offline retail business, as a useful supplement to brand authorization and industrial chain service, to open up traffic sources, sort out new brand image, and provide consumers with more and better household consumer goods.
Antarctic e-commerce told the Securities Times reporter that the offline retail business is a bold attempt by the company and a small step of trial and error.
Although the initial investment amount is large, the actual controller and external investors will share the risks with the company in the initial stage, and the operation mode is still a mode of not eating inventory. The main business of listed companies will still be brand authorization and industrial chain service business, so the related risks are controllable.
Compared with online, offline has a better experience and convenience. In recent years, examples of e-commerce giants laying out offline are not uncommon, which also proves the importance of tapping offline potential. At the same time, the offline retail business plans to use the brands authorized by listed companies to operate high-quality domestic products online, open up new business channels for listed companies and make strategic layout.